Home Business Equitas Small Finance Bank Q2 Results: Equitas SFB Q2 Results: Net profit...

Equitas Small Finance Bank Q2 Results: Equitas SFB Q2 Results: Net profit nearly triples to Rs 116 crore

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Equitas Small Finance Bank on Monday reported a nearly three-fold increase in net profit, underpinned by steady business growth and improved asset quality.

Net profit for the September quarter was Rs 116 crore against Rs 41 crore in the same period last year.

Lower provisions of Rs 90 crore compared to Rs 142 crore in the year-ago period, consistent with improved asset quality, boosted the bottom line.

“Portfolio quality remains comfortable with lower cost of credit,” said managing director PN Vasudevan. The bank’s net interest margin was 9%, while net interest income rose 26% to Rs 610 crore in the quarter against Rs 484 crore in the year-ago quarter.

Operating profit rose 22% to Rs 242 crore.

The ratio of gross non-performing assets at the end of September was 3.82%, compared to 3.95% three months earlier. Net NPA was 1.93% against 2.07%.

The bank’s advances grew by 20% year-on-year to Rs 22,779 crore.

“Loan demand continues to be strong, especially in the informal sector. The 20% y-o-y advance growth in the first half is expected to improve further in the seasonally active second half,” Vasudevan said.

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